New research has shown that more than two million foreign purchasers now own property in the UK.
The figures, which come from an analysis of HMRC data, show the increase in overseas landlords has been 39% in the last five years.
In 2006, there were 1.46 million foreign owners, rising to 1.93 million in 2011 and 2.04 million last year.
Central London and parts of the South East are particularly sought after for long-term investment by wealthy foreigners.
The demand has created a boom in prices, with prices in London soaring by 9.4% in just the last year. Analysts believe this trend will continue in 2014.
But the Chancellor has made the paying of capital gains tax mandatory for foreign investors if they sell their property after April 2015.
Previously people from abroad did not have to pay tax on the profits they made from British homes. The government is expecting to take £125 million from the "oligarch tax" between 2015 and 2019.
